Pepperstone Forex Broker - An Honest Review

Pepperstone is an online Forex and CFDs broker that can perfectly satisfy the needs of both beginners and experienced traders. It is a broker regulated by the FCA of the United Kingdom and by the Australian ASIC.

Next we are going to present a review of Forex broker Pepperstone:

The company was founded in 2010 in Melbourne (Australia) and currently has branches in four countries such as the United States, Thailand, the United Kingdom and China, thus being able to provide service coverage to the five continents.

On its website you can see all the legal information clearly and accurately. What already advances something about the reliability of this broker. But we will reach that point. For now, we can say that Pepperstone allows us to trade with a multitude of assets such as:

• More than 55 currency pairs from the Forex market.
• Cryptocurrencies such as Bitcoin, Ethereum, Litecoin, ...
• CFDs on stock indices such as IBEX 35, Nasdaq 100, Dow Jones 30, S & P 500, FTSE 100, DAX 30, ...
• Precious metals such as gold, silver, platinum, palladium, ...
• Energy commodities such as oil and gas.
• Agricultural commodities such as coffee, sugar, cotton, ...

With Pepperstone you can open a trading account from just €100 minimum deposit, the maximum leverage level varies depending on the financial instrument in which you trade, the spreads offered are quite low (from 1.6 pips in the Standard account for the pair EUR / USD), you can trade with microlotes and any trading strategy is allowed without restriction (scalping, hedging, EAs, ...).

The information for the elaboration of this review was obtained from:

Review of Pepperstone Forex Broker

Also, it is not a Market Maker broker. Pepperstone offers an STP/ECN execution by connecting electronically with its liquidity providers and its work consists solely of the intermediation between the client and the market (the liquidity providers). Therefore, there can not be a conflict of interest between the broker and the client, since Pepperstone does not act as a counterpart in the clients transactions.

Trading Platforms

Pepperstone offers us the following platforms to develop our trading:

Metatrader 4

We have commented in other articles the level that this platform has achieved in the world of trading. That's right, Metatrader 4 has become the most popular trading platform worldwide, due to its high performance and easy handling.

This platform developed by the company MetaQuotes Software offers the following main characteristics:

• Market watch with real time quotes
• Simple navigation
• Multiple types of orders.
• 85 technical analysis indicators (default, it is possible to install more thanks to its programming language).
• A complete analysis toolbox.
• Possibility of configuring the price charts and saving multiple configurations.

With MetaTrader 4 it is also possible to perform automated trading (so-called algorithmic trading) based on Expert Advisors (EAs) which are systems that are programmed and configured so that, based on predefined parameters, they open and close trading operations in a automatic.

The broker Pepperstone also offers its customers the version of the Metatrader 4 platform for Mac, a web version (in which it is not necessary to download or install anything on your computer, access it from any web browser with your username and password and allows to operate from different equipment and, therefore, different places) and versions specifically designed for mobile phones and tablets with iOS or Android operating system.

Smart Trader tools for MetaTrader 4

We can not leave the section dedicated to the Metatrader 4 trading platform without referring to the additional package that the Pepperstone broker provides to the trader. It is a series of additional tools to download. These additional tools are:

• Alerts manager.
• "Connect" service (this is access to a centralized portal with a series of additional services).
• Base correlation (indicates the correlations between different markets).
• Correlation operator (allows to see in real time differences and similarities of the correlation between two markets).
• Excel RTD (creation of spreadsheets, which can perform analysis of our account through a connection with Metatrader 4).
• Control of the market (general and complete view of the prices of different assets and our positions).
• Investor sentiment (offers investors' sentiment regarding a market, whether it is bullish or bearish).
• Session map (Shows the hours of the trading day in the different world places).
• Secret orders (to hide pending orders).
• Financial simulator (offers an evaluation of the performance of the strategy, useful for monetary management).
• Tick ​​chart inverter (ultra-fast tick screen that allows investors to place orders with a single mouse click).
• Investment terminal (functions designed for the rapid execution of orders).
• Miniterminal (reduced version to the investment terminal, to open fast operations).
• Indicators (a series of technical indicators, additional to those that are predetermined in Metatrader 4).

Metatrader 5

It is a more modern and improved version than Metatrader 4. Despite the numerical sequence, Metatrader 5 was not created to replace Metatrader 4. They are two different platforms. The improvements are usually focused on both the management and the interface; such as a greater number of time frames, offers two types of new orders to open operations, economic calendar incorporated, ...

However, it does not enjoy the popularity of Metatrader 4. Basically, the traders that operate with Metatrader 4, have a personalized configuration, custom indicators and even the aforementioned Expert Advisors. The problem is that this type of tools developed for Metatrader 4 are not valid for Metatrader 5. This has been an important part of why Metatrader 5 has not been as successful as it should be.

However, both platforms coexist in the market and both are available in the Pepperstone broker. For a beginner trader, who has not yet defined their preferences, it is recommended that you experiment both platforms and decide on the one with which you are most comfortable.

cTrader

cTrader is a platform that in addition to Pepperstone also offer some other online brokers. It is usually used by more experienced traders. Its main characteristics are the following:

• High speed in the execution of orders.
• It allows the use of automatic systems based on algorithms (but with a programming language different from the Expert Advisors of MT4 or MT5).
• Removable graphics.
• Good graphic quality
• Good system for order management.
• Maximum depth of market.
• Allows backtesting (testing of strategies with past data).

As we mentioned before for MetaTrader 4, the cTrader platform allows access through its download for desktop computers, the WebTrader version (web format) and specific applications for mobile devices (whether with the iOS or Android operating system).

Reliability of Pepperstone

The first question to analyze the reliability of Pepperstone, as well as any broker, is the verification that it is duly registered in the corresponding regulatory body of the country in which it has its headquarters, as well as in the regulatory bodies that allow it to develop its services in countries such as the European Union, ...

As mentioned at the beginning of this article, Pepperstone is a broker from Australia, the country where its headquarters are located, and is therefore authorized and regulated by the Australian Securities and Investment Commission (ASIC).

Pepperstone, here in Europe, has a headquarters in London and is authorized and regulated by the Financial Conduct Athority (FCA) of the United Kingdom. The FCA stands out for being a demanding and incisive regulator. The guarantees offered to investors when authorized by this entity are reinforced.

By making a timely check, it is confirmed that Pepperstone is registered with the FCA with license number 684312. We have also verified that it has the corresponding European passport to provide services in member countries of the Union.

Being attached to the supervision of the London FCA, Pepperstone must comply with a series of legal requirements. Among these requirements are those set by the European regulations on financial markets and investor protection (MiFID Directive). This Directive, among other aspects, requires that the broker's own funds must be segregated from the funds deposited by their clients. Therefore, the broker can not dispose of our funds for its own purposes (such funds being held by a first level bank, as in this case is Barclays Bank) nor can these be seized by any creditor in the event of a bankruptcy of the bank. company.

Pepperstone is also affiliated with the UK Invoice Compensation Fund (FSCS) which covers up to £ 50,000 per customer and is audited by an independent accounting firm, Ernst & Young. In addition to these guarantees, Pepperstone has its own compensation insurance, contracted with the London company Lloyds.

On deposits and withdrawals of funds, Pepperstone allows you to make deposits to finance our trading account through these channels:

Deposit and withdrawal of funds with Pepperstone

• Credit or debit cards (Visa and Mastercard).
• Wire transfer.
• Instant bank transfers, through POLi Banking.
• China Union Pay (bank card association based in China).
• Electronic payment services (Skrill, Neteller, Qiwi or Fasapay).
• From broker to broker (transfers between brokers).

Pepperstone does not apply commissions for this type of operations. In some cases there may be some kind of commission by means of payment used (international payments, currency exchange, ...).

As in any other regulated online broker, it is not possible, under any circumstances, for the broker to accept payments from third parties, the funds must come from the same account holder of the trading account.

With regard to withdrawals of funds, they must be requested through a specific form in the customer area that Pepperstone provides (for security). Applications are processed the same day if they are made before 21:00 GMT.

As mentioned for the deposits, the destination of the funds must be an account whose ownership is held by the client in the Pepperstone trading account.

In terms of customer service, Pepperstone has a team of professionals with years of experience. The client has an email and a live online chat to communicate with this broker. Also with a 24-hour customer service line.

Trading accounts of Pepperstone

Pepperstone offers different types of accounts, each with its own characteristics. To open a trading account we only have to follow the steps indicated by the intermediary. The normal process comprises four phases:

• Fill out an application from the broker's website. It's just a matter of giving you our contact information.
• Fill in the corresponding form, once you have provided the contact information.
• Confirmation of identity by providing documentation. It is a legal requirement. We must prove our identity and the ownership of the means of payment in which we will perform cash operations (deposits and withdrawals).
• Deposit funds by any of the means that have already been seen.

The types of trading accounts that Pepperstone allows to open are:

STP Standard Account

It is the most basic type of account of the Pepperstone broker. Apply commissions in the form of Spread (differential between the purchase price and the sale price). These spreads are from 1 pip for the most liquid assets. With this account the trader only has access to the Metatrader platform.

An interesting aspect of this intermediary is its protection against the negative balance. Not all brokers offer this risk management system. Some allow the trader to get into debt and the capital of the account to appear in negative, being able to lose more than what is deposited.

The minimum deposit to open a STP Standard account is € 100 or equivalent in any of the other currencies that Pepperstone accepts to manage your account (USD, GBP, CAD, JPY, ....).

Razor Account

We enter the advanced account, without limitations. To open a Razor account with Pepperstone there is a minimum deposit of AUD 200 (or its equivalent in EUR, USD, GBP, CAD, JPY, ....). The options are greater than in the Standard account:

• Access to the cTrader or Metatrader platforms.
• Lower spreads (can be up to 0 for the most liquid assets).
• Allows the use of Expert Advisors.

When using this type of account, at higher than spread, Pepperstone applies a commission of AUD 3.5 per batch operated. For different operating sizes, the proportional part will apply to us.

Islamic Account (Swap Free)

This type of accounts is characterized by suppressing Swap costs (refinancing the operation every day that we leave it open). The Swap (also called Roll Over) is applied taking into account the interest rate of the interbank market (one day) of the currency. The Islamic laws do not allow this type of operations with interests (the Swap can also be in our favor and collect the aforementioned interests). For this reason, many online brokers offer accounts of this style. The fact of not applying Swap is compensated with more demanding conditions when opening an account ($ 20,000 initial balance). Higher Spreads are also applied (between 1 and 1.2 pips on average).

Pepperstone demo account

With Pepperstone Forex Broker you can open a free demo account that comes with $ 50,000 of default balance and allows you to perform operations in an environment almost identical to a real money account.

This type of demo accounts are very useful when familiarizing with the broker's trading platform. It will also allow us to see the way of working and conditions of the intermediary and try different strategies to find our personal way of trading and without putting our capital at risk from the first moment.

The Pepperstone demo account is available for 30 days and can be used with any of the trading platforms we have seen.

This is our in-depth analysis of the Pepperstone broker. You can send us your opinions or doubts from the comments section and also share the article on social networks with your tweets, + 1s, likes, ... Thank you.

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